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12-11-2008 Dev´t of China´s private economy over 30 years WATCH VIDEOSource: CCTV.com 12-11-2008 11:06 Recognized as an indispensable component of the country’s market economy, the private sector now comprises 60 percent of the country’s total number of companies. But 30 years ago, the sector was all but nonexistent in China. But things began to change in 1978, when party leaders began reexamining the structure of ownership. Four years later, the reform policy progressed with an important change in the Chinese Constitution. The private sector was no longer denounced as an evil of capitalism, but was regarded as a necessary supplement to the public economy. Du Xiaoshan, Professor of Chinese Academy of Social Sciences said “With the support of the reform policy, China’s private economy experienced phenomenal growth during the 1980s. Most importantly, people’s attitudes towards private entrepreneurs also changed. They realized that there is nothing wrong about earning a better life through hardwork.” Within 30 years, the private economy had gone from being worth nothing to being worth ten trillion yuan in 2007, representing 40 percent of the national industrial output. This is more than that of the public sector and international sector. The private sector has generated 66 percent of the country’s patents and 82 percent of new products over the past 20 years, proving it’s more innovative. It also creates 6 million new jobs each year, about 75 percent of the annual total …
